How to Prepare for CPA FAR: What's Tested and a Study Plan

8/26/2026

Financial Accounting and Reporting has a reputation as the section that takes the longest to prepare for, and the reputation is earned. FAR covers more distinct topics than any other Core section, its three content areas are weighted almost evenly so none can be skipped, and the task-based simulations expect you to produce numbers, not just recognize them.

The good news is that FAR is also the most predictable section. It tests the FASB Codification, a fixed body of rules, with a bounded amount of not-for-profit and governmental material. Candidates who pass it usually do so through structure rather than talent: they know exactly what the blueprint covers, they allocate time by weight, and they practice simulations early.

This guide covers what the current FAR blueprint tests, how the exam is put together, and a study plan you can adapt. It is the preparation companion to our post on common FAR mistakes, which covers what goes wrong. Read that one too, once you have a plan.

Where FAR Fits in the Exam

Under the CPA Evolution model in place since 2024, every candidate passes three Core sections, Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR) and Taxation and Regulation (REG), plus one Discipline section: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC) or Tax Compliance and Planning (TCP). The old BEC section is retired.

FAR is a Core section, which means two practical things. It is required no matter which Discipline you choose, and it is available under continuous testing, so you can schedule it at any time of year subject to seat availability. That makes it easier to fit around work than the Discipline sections, which are offered only in set testing windows.

FAR also has a close relationship with BAR. FAR covers the foundational financial reporting topics, and BAR picks up advanced technical accounting such as business combinations, consolidations, derivatives and most of the governmental accounting. If you are considering BAR as your Discipline, taking it soon after FAR lets the preparation compound.

How the FAR Section Is Structured

According to the AICPA's Uniform CPA Examination Blueprints effective January 2026, FAR is laid out as follows.

Element	FAR
Testing time	4 hours
Multiple-choice questions (MCQs)	50, in two testlets of 25
Task-based simulations (TBSs)	7, in three testlets of 2, 3 and 2
Score weighting	MCQs 50%, TBSs 50%
Passing score	75 on a scale of 0 to 99

Three things about this structure shape how you should prepare.

Half your score comes from seven simulations. Each simulation therefore carries far more weight than any single multiple-choice question. Candidates who spend most of their study time on MCQs and treat simulations as an afterthought are training for half the exam.

Fifty MCQs in a four-hour exam is a lighter MCQ load than some sections. That leaves meaningful time for the simulations, which tend to require calculation, journal entries, research in the authoritative literature, or completion of a financial statement section. Time management is about protecting simulation time, not rushing MCQs.

The testlets come in a fixed order. You complete both MCQ testlets before the simulations, and you cannot return to a testlet once you submit it. A standardized break is offered after the third testlet that does not count against your four hours.

What the FAR Blueprint Tests

The blueprint divides FAR into three content areas. The ranges below are the AICPA's allocations, and the topics are summarized from the blueprint's overview.

Area	Allocation
I. Financial Reporting	30–40%
II. Select Balance Sheet Accounts	30–40%
III. Select Transactions	25–35%

Area I: Financial Reporting

This area covers preparing, reviewing and analyzing financial statements. It includes:

General-purpose financial reporting for for-profit and nongovernmental not-for-profit entities under the FASB Accounting Standards Codification
Financial statement ratios and performance metrics
Public company topics, including earnings per share and the SEC's interim, annual and periodic filing requirements for US registrants
Financial statements prepared under special purpose frameworks
Foundational state and local government concepts: measurement focus, basis of accounting and determining the right funds to record activities under GASB standards

Note the scope of the governmental material. FAR tests the concepts. The detailed preparation of government-wide and fund financial statements sits in BAR. That is not permission to skip governmental topics in FAR, but it should keep them in proportion.

If statement analysis is a weak point, our guides to the statement of cash flows and financial ratio analysis are useful refreshers.

Area II: Select Balance Sheet Accounts

This area applies the Codification to specific accounts, for both for-profit and not-for-profit entities:

Cash and cash equivalents
Trade receivables
Inventory
Property, plant and equipment
Investments, including financial assets at fair value, at amortized cost and equity method investments
Intangible assets, with a focus on finite-lived intangibles
Payables and accrued liabilities
Long-term debt, including notes, bonds payable and debt covenant calculations
Equity transactions: issuance, stock dividends, stock splits and treasury stock

These are the topics most candidates covered in intermediate accounting, which makes Area II feel familiar. Familiar is not the same as exam-ready. Bonds, investments and equity transactions all generate calculation-heavy simulations.

Area III: Select Transactions

This area covers specific transaction types:

Accounting changes and error corrections
Contingencies and commitments
Revenue recognition, focused on the five-step model and contributions received by not-for-profit entities
Accounting for income taxes
Fair value measurement concepts and the fair value hierarchy
Leases, focused on lessee accounting
Subsequent events

Revenue recognition, income taxes and leases are the heavy topics here. Each one is large enough to support a simulation on its own.

Skill Levels

The blueprint also tells you what kind of thinking FAR expects. For FAR, the allocation is Remembering and Understanding 5–15%, Application 45–55% and Analysis 35–45%. In plain terms, very little of FAR rewards memorizing a definition. Most of it asks you to apply a rule to facts or analyze a set of numbers. Your study method should match: reading and highlighting builds the 5–15%; working problems builds the rest.

Before You Start: Three Decisions

When to take FAR. Some candidates take FAR first because it is the broadest and they want it behind them while coursework is fresh. Others start with a narrower section to learn exam technique first. Both work. Our post on which CPA exam section to take first lays out the trade-offs. The one rule: do not schedule FAR during your busiest work period.

How many hours. FAR typically needs more study time than any other Core section. Rather than adopting someone else's total, estimate from your background: recent accounting graduates with strong intermediate grades need less; career changers and candidates who graduated years ago need more. Then convert the total into weeks at the number of hours you can genuinely study each week.

Book the date. Studying without a scheduled exam date is how preparation stretches indefinitely. Pick a date that fits your plan and work backward.

A 12-Week FAR Study Plan

This plan assumes a candidate working full time with roughly 15 to 20 study hours per week. If you have more time, compress it; if less, stretch each phase proportionally. The order follows the blueprint's logic: foundations first, then the account-level topics, then the transactions that build on them.

Weeks	Focus	Blueprint area
1	Conceptual framework, financial statements, special purpose frameworks	I
2	Public company reporting, EPS, ratios, not-for-profit statements	I
3	State and local government concepts	I
4	Cash, receivables, inventory	II
5	Property, plant and equipment; intangibles	II
6	Investments, including the equity method	II
7	Payables, long-term debt and bonds; equity	II
8	Revenue recognition; accounting changes and error corrections	III
9	Income taxes; leases	III
10	Fair value; contingencies; subsequent events; NFP contributions	III
11	Mixed review; weak-area drills; full simulations	All
12	Practice exams under timed conditions; final review	All

Within each week:

Learn the topic through lectures or reading, briefly. Aim for understanding, not notes.
Work MCQs immediately, untimed at first, reviewing every explanation, including for questions you got right.
Do at least two simulations on the topic before the week ends. Simulations reveal whether you can apply the material.
Review the previous week's topic with a short MCQ set, so earlier material does not decay.

In weeks 11 and 12:

Take at least one full-length practice exam in a single sitting, under timed conditions.
Analyze the results by area and topic, then return to the two or three weakest topics.
Practice your testlet pacing. Know roughly how long you will allow for the MCQ testlets so you protect time for simulations.
Stop learning new material in the final few days. Consolidate.

Simulation Technique

Since simulations are half the score, they deserve their own practice method.

Read the requirement before the exhibits. Know what you are solving for before you dig through the documents.
Use the exhibits efficiently. Simulations often include more information than you need. Identify which documents matter.
Partial credit is real. Simulations are usually scored on multiple parts. A simulation you cannot finish is still worth attempting in full.
Practice research tasks. Some simulations ask you to locate guidance in the authoritative literature. Learn the Codification's structure so you can navigate it quickly.
Move on when stuck. One stubborn simulation should not consume time owed to the others.

Common Weak Spots to Plan Around

Our FAR mistakes post covers these in depth, but for planning purposes, budget extra time for:

Governmental and not-for-profit topics, which most candidates have studied least
Bonds and long-term debt, where amortization calculations are a simulation favorite
Leases, especially the lessee measurement mechanics
Income taxes, deferred tax assets and liabilities in particular
Revenue recognition, especially multi-element contracts and the five-step model applied to facts

After the Exam

Core section scores are released on a rolling schedule after you test. Our post on CPA exam score release dates explains the timing. Do not stop studying while you wait. Start your next section, because the credit window begins with your first passing score, and momentum is the cheapest asset you have.

If you do not pass, the score report shows relative performance by content area. Use it to rebuild the plan around your weak areas rather than starting again from week 1.

Which FAR Course Fits Whom

If FAR is your next or only remaining section, the CPA Exam Prep FAR course is the focused option. It suits candidates retaking FAR, candidates who bought other sections separately, and those who want to test the format before committing to a full set.

If you are starting the exam and plan to take all four sections, the CPA Exam Prep All Parts Bundle gives you a single, consistent approach across FAR and the other sections. The CPA Review Course All Parts is the other full-set option.

If you plan to take BAR as your Discipline, consider pairing FAR with CPA Exam Prep BAR, since BAR builds on FAR's financial reporting foundation.

For a broader comparison of review course features, see our CPA review course comparison.

Start Preparing for FAR

The plan above works with any review material aligned to the current blueprint. If you want a structured course built around this section, start with CPA Exam Prep FAR, or browse every section on the CPA exam review courses page.

Frequently Asked Questions

What is tested on the CPA exam Financial Accounting and Reporting section?

FAR tests financial accounting and reporting under the FASB Accounting Standards Codification for for-profit and not-for-profit entities, plus foundational state and local government concepts. The AICPA blueprint divides it into Financial Reporting (30–40%), Select Balance Sheet Accounts (30–40%) and Select Transactions (25–35%). Topics range from financial statements, ratios and EPS to receivables, inventory, investments, debt and equity, and transactions such as revenue recognition, income taxes, leases, fair value and error corrections.

How is the FAR section structured?

FAR is a four-hour exam with 50 multiple-choice questions in two testlets of 25, followed by seven task-based simulations in three testlets of two, three and two. Multiple-choice questions and simulations each count for 50% of the score. You complete the testlets in order and cannot return to one after submitting it. A standardized break is offered after the third testlet. Passing requires a scaled score of 75 on a scale of 0 to 99.

How long should I study for FAR?

FAR usually needs more study time than any other Core section because it covers the widest range of topics. The right total depends on how recently you studied accounting and how strong your intermediate accounting foundation is. A working candidate studying 15 to 20 hours a week often plans for about three months. Estimate your own total, convert it to weeks at the hours you can actually commit, and book an exam date before you begin.

Is governmental accounting still on FAR?

Yes, but in a narrower form than before. Under the current blueprint, FAR covers foundational state and local government concepts, including measurement focus, basis of accounting and determining which funds record an activity. The detailed preparation of government-wide and fund financial statements is tested in the BAR Discipline section. FAR also tests not-for-profit reporting, including statements of financial position and activities and accounting for contributions received.

Should I take FAR first?

It depends on your situation. Taking FAR first makes sense if your accounting coursework is recent and you want the broadest section done while the material is fresh. Starting with a narrower section can make sense if you want to learn exam technique before tackling FAR's volume. Avoid scheduling FAR during busy season or any period when you cannot keep a steady study rhythm, since it rewards consistent weekly practice more than late cramming.

What is the best way to practice FAR simulations?

Work simulations from the first week, not just at the end. After learning each topic, complete at least two simulations on it, reading the requirement before the exhibits and noting which documents actually mattered. Practice research tasks in the authoritative literature so you can navigate the Codification quickly. In the final weeks, take full timed practice exams so you know how long the multiple-choice testlets take you and can protect enough time for all seven simulations.